TikTok has unveiled a new U.S.-based joint venture designed to secure its future in the country after years of political pressure and national security scrutiny. Yet the announcement only underlines a broader reality: TikTok was already flourishing in the U.S. well before a joint venture stepped in to avert a possible ban. Even as Washington debated restrictions and courts weighed in, the short-video app remained one of the most dominant digital platforms in America throughout 2025.
Owned by Beijing-headquartered ByteDance, TikTok ranked as the second-most-downloaded app in the U.S. across Apple’s App Store and Google Play in 2025, according to data from Sensor Tower. The performance came despite the app briefly going offline earlier in the year amid fears of an outright ban.
ByteDance’s influence extended beyond TikTok. Its video-editing app CapCut climbed to fourth place in U.S. downloads, while other China-linked platforms also performed strongly. Discount e-commerce giant Temu and fast-fashion retailer Shein continued to attract millions of American users, even as both faced tighter trade rules and regulatory attention.
Temu, which grabbed headlines with a Super Bowl advertising blitz in 2024, slipped from the top spot but still ranked seventh in 2025, despite tariffs that disrupted its low-cost model. Shein, meanwhile, did not crack the overall top ten but emerged as the most downloaded apparel shopping app in the U.S. last year. Separately, OpenAI’s ChatGPT was the most downloaded app in America, reflecting the explosive growth of generative AI.
According to Sensor Tower, U.S. consumers continue to embrace apps originating from China, often drawn by addictive algorithms, sharp pricing, and seamless convenience. Liang Chen, a professor at Singapore Management University, noted that these platforms are no longer simply exploiting regulatory gaps but have evolved into “adaptive ecosystems” capable of responding quickly to both user demand and policy pressure.
Defying the Ban Narrative
Before the joint venture announcement, TikTok endured months of uncertainty. In January 2025, the Supreme Court upheld a law that effectively barred the app from U.S. app stores unless ByteDance divested its stake. The legislation, signed by President Joe Biden in April 2024, cited fears that the Chinese government could access user data or influence public opinion.
Although TikTok briefly shut down in January, the ban was never fully enforced. After returning to office, President Donald Trump repeatedly extended deadlines while negotiations over a potential divestment continued. The uncertainty also pushed some users to explore alternatives such as Xiaohongshu, known internationally as RedNote.
Crucially, TikTok’s core engagement never wavered. The platform continued expanding TikTok Shop, its built-in e-commerce feature that allows users to buy products directly from videos and livestreams. Under the new joint venture, TikTok’s U.S. entities will still oversee key commercial operations, including advertising and online shopping.
Retail consultancy Coresight estimates TikTok’s U.S. revenue jumped 26.2% year over year to $13.9 billion in 2025, following strong growth the previous year. Eurasia Group’s Xiaomeng Lu described TikTok’s performance as a rare example of commercial strategy outpacing geopolitical tensions, adding that the company appears close to finalizing a deal with U.S. investors.
Temu, Shein, and the E-Commerce Test
TikTok Shop’s rivals, Temu and Shein, also weathered a challenging year. Both companies faced new tariffs, stricter oversight of labor and supply chains, and the closure of the long-standing “de minimis” trade rule in May 2025, which had allowed packages under $800 to enter the U.S. duty-free.
While both firms have shifted their headquarters outside China, much of their supply base remains there. Analysts say they responded by renegotiating supplier contracts, absorbing some tariff costs, and diversifying production to other countries, including the United States.
Coresight estimates Shein’s U.S. revenue rose 16.8% to $14.6 billion in 2025, while Temu’s gross merchandise value surged 21.8% to $27.4 billion. According to Chen, policy shocks did not eliminate demand but instead proved how quickly these platforms can adapt compared with slower-changing consumer habits.
The Algorithm Advantage
Industry analysts argue that the resilience of TikTok, Temu, and Shein lies in their mastery of attention-driven algorithms. Scott Miller, CEO of e-commerce consultancy pdPlus, said their success reflects a shift away from traditional advertising toward an “attention economy,” where entertainment and personalization drive purchasing decisions.
That same algorithmic power has fueled regulatory concern. U.S. officials have questioned whether TikTok’s recommendation engine could be manipulated for political purposes, while Temu and Shein have faced scrutiny over data privacy and security practices.
Even so, consumer behavior has remained largely unchanged. Yao Jin, an associate professor at Miami University, summed it up simply: most American users care less about an app’s country of origin than about finding engaging content and affordable products. That, he said, remains the core competitive edge of many China-originated platforms.